Bush says effects of financial bailout will take time

By Tabassum Zakaria

MIDLAND, Texas (Reuters) - President George W. Bush said on Saturday that benefits from the recently passed financial bailout would take time to show up in the U.S. economy.

One day after Bush signed the $700 billion (396 billion pounds) rescue package into law, he sought to assure the public the government would be careful in implementing the legislation aimed at easing a credit crisis that has created turbulence in global financial markets.

"In addition to addressing the immediate needs of our financial system, this package will also help to spur America's long-term economic growth," Bush said in his weekly radio address.

The president acknowledged more work lay ahead to stabilise financial markets where borrowing and lending have come to a standstill because of worries about bad debts.

"Obviously we've got to deal with this financial situation," Bush told reporters while visiting a boyhood home after attending a Republican fundraiser.

He said Congress had taken a "big step" by passing the financial legislation in "giving us the tools necessary to bring some stability to the marketplace."

He added, "There's a lot of work to be done."

Bush pressed all week for Congress to approve the legislation, which received a blow on Monday when the House of Representatives rejected it.